Wrapping up Q4 earnings, we look at the numbers and key takeaways for the consumer discretionary stocks, including Sonos (NASDAQ: SONO) and its peers.

This sector includes everything from cable TV services to hotel stays to gym memberships. While diverse, the way people buy and experience these products is being upended by the internet and digitization. Consumer discretionary companies are working to adapt to secular trends such as streaming video, online marketplaces for lodging accommodations, and connected fitness. That discretionary purchases are, by definition, something consumers can give up makes it even more imperative for companies in the space to adapt.

The 148 consumer discretionary stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.

While some consumer discretionary stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4% since the latest earnings results.

Sonos (NASDAQ: SONO)

A pioneer in connected home audio systems, Sonos (NASDAQ: SONO) offers a range of premium wireless speakers and sound systems.

Sonos reported revenues of $545.7 million, flat year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

“Fiscal 2026 is off to a good start for Sonos as we make progress toward a return to growth,” said Tom Conrad, Chief Executive Officer of Sonos.

Unsurprisingly, the stock is down 6.2% since reporting and currently trades at $13.72.

Is now the time to buy Sonos? Access our full analysis of the earnings results here, it’s free.

Best Q4: Figs (NYSE: FIGS)

Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE: FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.

Figs reported revenues of $201.9 million, up 33% year on year, outperforming analysts’ expectations by 21.8%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 17% since reporting. It currently trades at $14.59.

Is now the time to buy Figs? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Mattel (NASDAQ: MAT)

Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel (NASDAQ: MAT) is a global children's entertainment company specializing in the design and production of consumer products.

Mattel reported revenues of $1.77 billion, up 7.3% year on year, falling short of analysts’ expectations by 3.7%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

As expected, the stock is down 30.6% since the results and currently trades at $14.63.

Read our full analysis of Mattel’s results here.

Zillow (NASDAQ: ZG)

Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ: ZG) is the leading U.S. online real estate marketplace.

Zillow reported revenues of $654 million, up 18.1% year on year. This print topped analysts’ expectations by 0.5%. Zooming out, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but EPS in line with analysts’ estimates.

The stock is down 25.5% since reporting and currently trades at $40.53.

Read our full, actionable report on Zillow here, it’s free.

Hasbro (NASDAQ: HAS)

Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.

Hasbro reported revenues of $1.45 billion, up 31.3% year on year. This result surpassed analysts’ expectations by 14.4%. Overall, it was an incredible quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 7.1% since reporting and currently trades at $89.93.

Read our full, actionable report on Hasbro here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

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